Fund Manager Comment

A mutual fund manager named Craig Hodges was just on CNBC giving a bullish outlook on the market.

His bullish assessment may be right or wrong but he said something that I thought was particularly interesting. He said that at one point his fund was up 16% and now it is only up 6%. He did not seem very worried which is the thing.

No one wants to see their portfolio go down like that but sometimes it goes with the territory. I do not know if that type of move is normal for the fund or not but since he brought it up I take it that the move has in no way incited panic.

This is an important mindset to keep for anyone in the market. There will be periods where things don't go your way, guaranteed. More often than not, selling is the wrong course of action. Here I am talking about investors as opposed to traders.

I commend Hodges' lack of emotion and realization that markets do this. I have no idea how good or mediocre his fund is and this is not the point. Staying calm and rational is the point.